As stocks continue to rally, two other asset classes that have been doing very well lately are junk bonds and preferreds. Below are six-month price charts of the high yield (junk) bond ETF (HYG) and the preferred stock ETF (PFF). As shown, both have basically gone parabolic over the last few weeks, making new 52-week highs on a daily basis.
While high yield bonds and preferreds have been on big runs higher for quite a while now, it may surprise some to know that they're still well below their highs from before the financial crisis. Below are long-term charts of both HYG and PFF since the two ETFs were created back in 2007. As shown, HYG needs to gain another 10% to get back to its pre-financial crisis high, while PFF needs to gain another 23%.